Conventional mortgages are the most common form of home financing. These loans are not backed by the government and typically require a down payment of at least 20% of the home’s purchase price to avoid mortgage insurance. Conventional mortgages can be either fixed-rate, where the interest rate remains constant throughout the loan term, or variable-rate, where the interest rate fluctuates based on market conditions.

if a buyer cannot make a 20% down payment, they can apply for a high-ratio mortgage. These loans require mortgage insurance, which protects the lender in case of default. High-ratio mortgages are available to buyers who can provide as little as 5% down payment, making homeownership more accessible for first-time buyers in Regina.

In Canada, several government programs help make home financing more accessible. For instance, the Canada Mortgage and Housing Corporation (CMHC) offers mortgage insurance for high-ratio loans, allowing lenders to provide financing to buyers with lower down payments. Additionally, the First-Time Home Buyer Incentive program offers shared equity loans to assist eligible first-time buyers in purchasing their homes.

Homeowners looking to finance renovations or consolidate debt may consider home equity loans or lines of credit. These options allow borrowers to tap into the equity they have built in their homes. Home equity loans provide a lump sum, while lines of credit offer flexibility by allowing homeowners to borrow as needed up to a predetermined limit.

In addition to traditional banks, alternative financing options, such as credit unions and private lenders, can offer competitive rates and terms. These lenders may cater to buyers with unique financial situations or those who may not qualify for conventional financing.